Maharashtra Stamp Duty Rates for Loan Agreement

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When entering into a loan agreement in Maharashtra, borrowers and lenders need to be aware of the applicable stamp duty rates that must be paid. Stamp duty is a tax levied on legal documents to make them legally valid.

The stamp duty rates for loan agreements in Maharashtra are determined by the Maharashtra Stamp Act, 1958, and the Maharashtra Stamp Rules, 1995. The rates vary based on the type of loan agreement and the amount of the loan.

For loan agreements up to Rs. 5 lakh, the stamp duty is 0.1% of the loan amount, subject to a maximum of Rs. 1,000. For loan agreements between Rs. 5 lakh and Rs. 10 lakh, the stamp duty is Rs. 1,000 plus 0.2% of the loan amount exceeding Rs. 5 lakh. For loan agreements between Rs. 10 lakh and Rs. 15 lakh, the stamp duty is Rs. 3,000 plus 0.3% of the loan amount exceeding Rs. 10 lakh. For loan agreements between Rs. 15 lakh and Rs. 25 lakh, the stamp duty is Rs. 6,000 plus 0.4% of the loan amount exceeding Rs. 15 lakh. For loan agreements between Rs. 25 lakh and Rs. 50 lakh, the stamp duty is Rs. 11,000 plus 0.5% of the loan amount exceeding Rs. 25 lakh. For loan agreements above Rs. 50 lakh, the stamp duty is Rs. 23,500 plus 0.6% of the loan amount exceeding Rs. 50 lakh.

It is important to note that stamp duty should be paid within 30 days of the execution of the loan agreement. Failing to pay the stamp duty within the deadline can result in a penalty of 2% per month on the unpaid duty.

In conclusion, borrowers and lenders in Maharashtra should be aware of the applicable stamp duty rates for loan agreements. Paying the stamp duty on time is crucial to ensure the legality of the loan agreement and avoid any penalties.